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The Ukrainian Weekly 1997, No.42

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The Ukrainian Weekly 1997, No.42 www.ukrweekly.com INSIDE:• Leadership Conference focuses on Ukrainian American community — page 3. • New York pastor celebrates 50th jubilee — page 5. • The UNA’s former headquarters in Jersey City: an appreciation — centerfold. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXV HE No.KRAINIAN 42 THE UKRAINIAN WEEKLY SUNDAY, OCTOBER 19, 1997 EEKLY$1.25/$2 in Ukraine ForeignT InvestmentU Council strives Verkhovna RadaW acts quickly on changes to make Ukraine business-friendly to election law suggested by president by Roman Woronowycz which is more sympathetic to the needs of by Roman Woronowycz ing with Article 94 of the Constitution of Kyiv Press Bureau businesses, and the predominantly leftist Kyiv Press Bureau Ukraine.” legislature has also led to constantly But the Verkhovna Rada speedily KYIV — The President’s Foreign changing statutes that affect the business KYIV — Ukraine’s Parliament moved made room on its agenda of October 14 Investment Advisory Council met for the community. One of Motorola’s reasons quickly to smooth any further roadblocks and in one session passed 13 of the pro- first time on October 3 to begin the work for abandoning its deal with Ukraine were to a new law on elections on October 14 posals and rejected two, most notably a of making Ukraine more amicable to for- the “ever-changing rules of the game,” when it acted in one day to incorporate recommendation that a 50 percent eign businesses. Although Ukraine’s said its Ukraine director at the time it can- most changes requested by the president. turnout in electoral districts remain a president and government officials tried celed its contract with the government. After waiting the 15 days he is allowed requirement for a valid election. The to paint a hopeful picture, representatives Some observers here say Motorola was under the Constitution to accept or reject a original version the lawmakers kept of the international business community actually referring to the numerous and bill received from the Verkhovna Rada, requires no minimum turnout, which insisted that more changes are needed. ever-changing officials that must be paid President Leonid Kuchma surprised many effectively kills any threat of second- Problems such as large-scale graft, off to receive permits and licenses, while here by returning the election bill to the round voting, except in cases of a tie. In ever-changing laws and a non-user- others simply think it was a reference to legislature on October 13, along with a the 1994 elections consistently poor friendly corporate tax have made at least instability surrounding business laws. letter listing 15 changes he felt were nec- voter turnout in certain districts resulted one large multi-national firm, Motorola, Laws can change in a day, or can be essary and without which he would be in some Verkhovna Rada seats remaining cancel its contract to provide a billion- implemented retroactively, as happened forced to veto the bill. empty for the entire four year term of dollar mobile phone system for Ukraine, with the value-added tax. That tax, It was an unexpected move because Ukraine’s second Parliament. and many others gun-shy about doing which marks up commodities imported just days before the Parliament passed a Verkhovna Rada Chairman Oleksander business in Ukraine. into Ukraine by 20 percent, even those new election law on September 24, Moroz, trying to assuage the fears of Since 1991, Ukraine has attracted only needed to build a finished product in the which gives Ukraine a mix of a propor- national deputies who thought that reject- around $1.6 billion in foreign invest- country, are highly constricting on for- tional party system and a straight majori- ing the presidential guideline for a mini- ment, and nothing suggests that a boom eign investment. ty one, President Kuchma told lawmak- mum required voter turnout would lead to is imminent. Then there is the corporate profit tax ers he was ready to sign a law on a mixed a veto, told the legislative body before the Peter Baker, general director of Coca- on joint ventures, which at 30 percent election system. vote: “The president told me yesterday Cola Amatil — Central Europe, one of dissuades all but those with the most Stating that certain provisions of the that this clause is not crucial.” the most successful foreign investors in long-term investment goals to put their election law “contravene the Constitution However, a presidential proposal that Ukraine, did not mince words when he money in Ukraine. The Verkhovna Rada of Ukraine,” the president in his letter of all candidates speak Ukrainian, a stipula- addressed the council. “The corporate has four times rejected bills sponsored October 13 said the Verkhovna Rada tion that many national democrats had profit tax sends a negative signal to those by the president to exempt foreign joint should re-examine the bill and act on the considered a victory, was removed after a who are thinking about bringing their 15 recommendations “failing which, I money into Ukraine,” said Mr. Baker. (Continued on page 7) will have to use the right of veto in keep- (Continued on page 7) “We also have concerns about the value- added tax, customs procedures, very unspecified laws and the huge bureaucra- cy that still exists.” Toronto pays tribute to former Soviet political prisoner However, Mr. Baker said he was by Andrij Kudla Wynnyckyj heartened that now there was the chance Toronto Press Bureau to improve the investment climate through the council. TORONTO — The 10th anniversary of Danylo Shumuk’s The 21 foreign members of the council release from the Soviet gulag and arrival in Canada in May represent large multi-national firms, 1987, after a mind-numbing 42 years in various jails, prison including U.S.-based corporations such as camps and exile, was celebrated with a tribute, titled “Road to the Boeing Corp., Cargill, and Ernst and Freedom,” at Toronto’s Old Mill on September 28. Young, the British oil conglomerate Seated with Mr. Shumuk at the head table was a special British Petroleum, the Korean automotive guest, Eduard Kuznetsov, who had been a philosophy student giant Daewoo and the German firms when he was sentenced to seven years for “anti-Soviet under- Deutsche Telekom and Daimler-Benz, ground activity” in 1961. Later, after a failed attempt to hijack a who have maintained an investment or are plane to the West, he was sentenced to death. An international about to do so despite a Ukrainian econo- outcry prompted the Kremlin to commute Mr. Kuznetsov’s my that continues to tumble and still has sentence; thus, he came to share a prison cell with Mr. Shumuk not seen full reform of the marketplace. for five years in the 1970s. What keeps them here is a huge, well- Mr. Kuznetsov, author of “Prison Diaries,” an award-win- educated and cheap work force and a ning account of his incarceration, traveled from Israel where he lucrative market of 51 million people – works as editor-in-chief of the Russian-language Tel-Aviv- Europe’s second largest. based daily Viesti, to pay homage to his former cellmate. But it is a harsh business climate in “For him the truth means the truth and nothing else,” the which even medium-sized firms must Moscow-born Jewish activist said of Mr. Shumuk. “For him, first obtain in the area of 80 different honesty means honesty and conscience means conscience.” types of licenses from various tiers of “For Shumuk, being Ukrainian is very important, but even if government merely to begin to work, you were a Martian, and he saw that you were being wronged, according to Andrew Bihun, senior com- he would stand up for you.” Mr. Kuznetsov added. mercial officer at the United States He said it was difficult to imagine, even now for survivors, Embassy here. “Fees on an official level how harsh conditions were in strict-regime camps such as those are comparable to Western Europe, but in which Mr. Shumuk was held. “But the Russian proverb says, the sheer number of them is enormous,” ‘it’s not the bars, nor the cells, it’s the other prisoners,’ ” Mr. Andrij Kudla Wynnyckyj said Mr. Bihun. “Many people say it is Kuznetsov recalled. “And so I’d tell people: ‘If you end up in the wellspring for graft,” he added. Danylo Shumuk as he was presented with a copy of the The battle for control of the govern- (Continued on page 4) Universal Declaration of Human Rights and sunflowers. ment between the executive branch, 2 THE UKRAINIAN WEEKLY SUNDAY, OCTOBER 19, 1997 No. 42 Ecumenical patriarch to visit UOC center SOMERSET, N.J. – Ecumenical Continental Congress. The tour will also NEWSBRIEFSNEWSBRIEFS Patriarch Bartholomew will visit the include such points of interest as the St. Center of the Ukrainian Orthodox Andrew Memorial Church, St. Andrew Kuchma says CIS has exhausted itself 10 percent during the first six months of Church of the U.S.A. and Diaspora, Cemetery, the crypt of the Church’s first 1997. Mr. Chernomyrdin called for a located in South Bound Brook and patriarch, the Memorial Church Museum, ALMATY — President Leonid coordinated monetary policy. According Franklin Township, N.J., on Monday, Archdiocesan Consistory and Library Kuchma told journalists in the Kazak capi- to Izvestiya of October 10, the prospect of October 27. Complex, and St. Sophia Seminary. tal, where he arrived on October 14 for an introducing a single CIS currency The spiritual leader of the 3 million- The historic visit to the center will official visit, that the Commonwealth of between 2005 and 2010 was discussed. In member Orthodox Christian Church is include the celebration of a Moleben Independent States “in its current form” Kyiv, after the summit, Ukraine’s Prime scheduled to arrive via helicopter from Doxology at 5:30 p.m.
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